Maurice Tutor
$15/per page/Negotiable
(Learning Objective 3: Consolidating a wholly-owned subsidiary) Razorback Express, Inc., paid $266,000 to acquire all the common stock of Sooner Corporation, and Sooner owes Razorback $81,000 on a note payable. Immediately after the purchase on September 30, 20X8, the 2 companies’ balance sheets follow.
|
Razorback |
Sooner |
|
|
Assets |
||
|
Cash |
$ 24,000 |
$ 20,000 |
|
Accounts receivable, net |
91,000 |
42,000 |
|
Note receivable from Sooner |
81,000 |
— |
|
Inventory |
19,000 |
214,000 |
|
Investment in Sooner |
266,000 |
— |
|
Plant assets, net |
278,000 |
219,000 |
|
Total |
$759,000 |
$495,000 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ 57,000 |
$ 49,000 |
|
Notes payable |
175,000 |
149,000 |
|
Other liabilities |
129,000 |
31,000 |
|
Common stock |
150,000 |
118,000 |
|
Retained earnings |
248,000 |
148,000 |
|
Total |
$759,000 |
$495,000 |
Required
Prepare the consolidated balance sheet of Razorback Express (It is sufficient to complete a consolidation work sheet.)